Some of the advantages of purchasing a home:
• Equity –Equity is defined as “the money value of a property or of an interest in a property in excess of claims or liens against it”. The most basic way to describe this is the difference in what you owe on the home versus its fair market value. As you make payments on your mortgage the equity of your home increases or decreases according to what the market is doing in your area.*
• Tax Benefits – You may be able to deduct mortgage loan interest amounts and property taxes from your income tax. (Always consult your tax advisor about your specific situation)
• Individuality – You can customize your home the way you want it with paint, tile, carpet, wood, appliances, & faucets. That is just to name a few. When renting you generally do not have this option and if you do normally you have to pay to have it return to the way it was prior to moving in.
• Maintenance – Anyone that has rented before knows that unless they cause the damage the maintenance is included in the rent. This can be a great thing. What most people don’t realize is that when your air conditioning breaks in the middle of July in Louisiana and it takes two days if not more to get a repair man out, there is nothing you can do but sit back and wait. There are home warranty plans that can be purchased when you buy a home. These help to cushion the cost of maintenance and getting a technician out to your home when you call the first time. This is a wonderful thing!
• Pets – Although some places allow for pets, most have restrictions on what size and/or breed that you can keep. If you own your own home you are free to pick the type of pet that you want.
There are many more advantages to buying versus renting. My suggestion would be to sit down and draw a line down the center of a piece of paper. On one side write the pros and on the other write the cons. Only you can answer the question of which is right for you but putting it on paper might make it more clear which would be the better option for you.
*To find out what your property is worth contact Rebecca Melancon at 842-9250.
